Following Are Selected Accounts for Green Corporation and Vega Company

question 51

Multiple Choice

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2013. Several of Green's accounts have been omitted. Green acquired 100% of Vega on January 1, 2009, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2009, Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment. Compute the December 31, 2013, consolidated common stock.

• A) $450,000.
• B) $530,000.
• C) $555,000.
• D) $635,000.
• E) $525,000.

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Definitions:

Life Expectancy

The average period that an individual is expected to live, based on statistical analysis of current mortality trends.

75-year-old

Referring to an individual or the state of being seventy-five years of age.

Geographic Areas

Defined regions or spaces on the Earth's surface, identified by natural or artificial boundaries.

Elder-friendly Dwellings

Housing designed to accommodate the specific needs of older adults, featuring accessible facilities and safety modifications.